Peso rebounds on COVID-19 vaccine optimism

The Philippine peso rebounded against the US dollar on Tuesday, buoyed by optimism on a possible vaccine against the coronavirus disease.

The local currency gained 20 centavos to close at P50.7:$1 from Monday's finish of P50.9:$1.

According to Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort, the peso strength came with improved risk appetite.

"The peso exchange rate closed stronger today at P50.70, though still among the weakest in three weeks, versus yesterday's P50.90 amid market optimism / improved market risk appetite worldwide about the development of a possible COVID-19 vaccine (Moderna)," he said in a mobile message.

He was referring to drugmaker Moderna Inc. which said that its experimental vaccine against the coronavirus showed promising results in small early-stage trials.

"The peso also stronger after the decline in the US dollar vs. major Asian/global currencies amid gains in the US/global stock markets with developments on the vaccine and much lower new COVID-19 new cases and deaths," added Ricafort. — BM, GMA News